CybAero signs agreement with Alpha Blue Ocean for up to SEK 52.5 million
CybAero and European High Growth Opportunities Securitization Fund (“EHGO”), advised by Alpha Blue Ocean Advisors Ltd, member of the Alpha Blue Ocean Investment Group (“ABO”), has now signed an agreement regarding a financing solution of up to SEK 52.5 million in the form of thirteen convertible loans, the first loan of SEK 4.5 million and the following twelve loans each of SEK 4 million.
CybAero has received a bridge loan of SEK 1 million from EHGO and will receive a further bridge loan of SEK 3 million, as soon as the trade in CybAero’s shares has been resumed on First North. The loan will be set off against EHGO’s subscription for the first convertible loan after the upcoming extraordinary shareholders’ meeting.
The convertible loans will have a mandatory conversion at the latest 12 months from issuance. The conversion rate will be equal to the lower between (i) 85 % of the lowest daily volume-weighted average price (VWAP) for the company’s shares observed over the 20-trading days’ period preceding the day for issuance of a notice for conversion of the convertible loan (or 85% of SEK 1.46 if such number is lower, in the specific case of the first tranche), and (ii) 145 % of the lowest daily VWAP observed over the 15 trading days’ period preceding the issuance of the first tranche (or 145% of SEK 1.46 if such number is lower, in the specific case of the first tranche).
Each convertible loan will be issued together with a warrant package which entitles to subscribe for additional shares for an amount corresponding to 100 % of the nominal value of the convertible loan which they are issued together with. The subscription price shall be equal to 110 % of the lowest daily VWAP observed over the 20 trading days’ period immediately preceding the request to issue a new tranche. Regarding the first tranche, the subscription price to subscribe for additional shares upon exercise of the warrants shall be equal to 110% of the lowest between (i) SEK 1.46, and (ii) the lowest daily VWAP observed over the 20 trading days’ period immediately preceding the request to issue the first tranche.
Subversive Capital has agreed to lend EHGO a fixed number of shares.
The board of directors will call for an extraordinary meeting with the shareholders in order to decide upon an issue of convertible loans and warrants.
Pierre Vannineuse, ABO's founder and CEO commented: "As previous members of Bracknor who initiated the original financing, we are pleased to lend our support and resources to CybAero once again. We look forward to working with the Company as we originally intended."
Hugo Pingray, ABO’s co-founder and COO commented: ”We are pleased to welcome Cybaero into our portfolio. Alpha Blue Ocean has a proven track records of successful turnaround situations and brings full financial support for the year to come. We have tremendous confidence in CEO Tommy Magnusson who brings his extensive aerospace marketing and technical experience to the Company and we look forward to working side by side with the new management team”.
Michael Auerbach, CybAero’s Chairman said, “We are excited to be working with ABO and look forward to a long and constructive relationship as CybAero continues to pursue a position as the market leader in both services and sales of VTOL remotely piloted aircraft.”
About European High Growth Opportunities Securitization Fund (EHGO)
European High Growth Opportunities SF is an institutional investment vehicle based in Luxembourg focusing on financing highly innovative companies on a pan European basis which it considers highly undervalued. EHGO is exclusively advised by Alpha Blue Ocean Inc. Its mandate is to invest in highly innovative European companies while supporting their needs for growth capital and offer a credible European alternative to funding.
Alpha Blue Ocean was founded by Pierre Vannineuse and is the investment manager to a family of funds operating across multiple jurisdictions and focusing on directly financing highly innovative technologies while remaining non-intrusive into the management of its portfolio companies. Alpha Blue Ocean specializes in providing flexible, innovative and non-invasive debt and equity financing to publicly listed companies across the world and in a variety of sectors including healthcare, energy, mining and technology. Alpha Blue Ocean’s main representation office is based in London, UK.
CybAero develops and manufactures Remotely Piloted Aircraft Systems (RPAS) for safer and more effective aerial operations in various environments, including those hazardous in nature. The company has made a great international impact with its APID One helicopter, which can be adapted for both military and civilian applications such as coastal and border surveillance, search and rescue missions, and mapping. CybAero’s head office is located in Mjärdevi Science Park in Linköping, Sweden. The company has been listed on the NASDAQ First North since 2007. FNCA Sweden AB is the company's certified adviser.
This information is information that CybAero AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CET on 28 march 2018.